Vector group ltd. announces commencement of notes offering of additional $230 million of senior unsecured notes due 2026

Vector group ltd. announced that it is commencing an offer to issue and sell an additional $230 million aggregate principal amount of 10.500% senior notes due 2026. the offering is expected to price during the week of november 11, 2019. the notes will have the same terms as the company’s existing 10.500% notes, other than the date of issue and the initial price. the notes will accrue interest from november 1, 2019. immediately after giving effect to the issuance of the notes, the company will have $555,000,000 aggregate principal amount of 10.500% senior notes due 2026 outstanding. there can be no assurance that the offering will be priced or completed. the notes will be fully and unconditionally guaranteed on a joint and several basis by all of the wholly owned domestic subsidiaries of the company that are engaged in the conduct of the company’s cigarette businesses, and by der holdings llc, its wholly owned subsidiary through which the company indirectly owns a 100% interest in douglas elliman realty, llc, which operates the larger residential brokerage company in the new york metropolitan area and also conducts residential real estate brokerage operations in florida, california, connecticut, massachusetts and colorado. the notes will not be guaranteed by new valley llc, or any subsidiaries of new valley llc, other than der holdings llc. the notes will not be secured by any of the assets of the company or the guarantors. the company intends to use the net cash proceeds from the offering to redeem, repurchase, repay or otherwise retire, the principal amount of, plus accrued and unpaid interest on, the company’s outstanding 5.5% variable interest senior convertible notes due 2020 (the “2020 convertible notes”) at, or prior to, their maturity, to pay costs and expenses in connection with the offering of the notes and the transactions contemplated thereby, and for general corporate purposes. pending the application of the proceeds of this offering, the company intends to invest the net proceeds from the offering temporarily in investment grade securities, money market funds, bank deposit accounts or similar short-term investments.
VGR Ratings Summary
VGR Quant Ranking